The Montenegro Foundation


Citizens of the newest nation on earth - the Republic of Montenegro - have
wisely learned from the experiences  of other new European democracies:
adopt modern financial systems tied to a widely accepted currency; market
assets to potential tourists and foreign investors; and declare independence
from a larger country only after a vote of the people. Yet many Montenegrins
question whether their nation has learned how to capitalize on foreign
investment so that it enhances their quality of life and preserves the
natural and cultural assets that attract tourists.

There are many reasons for Montenegro's rapid increase in tourism, including
its world-class beaches, cultural sites and National Parks. These must be
protected for their inherent value, to create a sustainable tourism sector,
and so that Montenegro can simultaneously live up to Article 1 of its
Constitution, which defines the nation as an "Ecological State", and follow
the top priority of its Parliament: the development of tourism. Investors,
visitors and Montenegrins all benefit from these tourism assets, and thus
they should all contribute to their enhancement.

Other nations have found an efficient way to turn foreign investment in
their property into a domestic investment in their people. They have
established philanthropic organizations and laws that provide financial and
other benefits to donors, and then use these donations to build a permanent
endowment fund that serves society. This financial and philanthropic
mechanism is a community foundation, which serves all peoples - regardless
of nationality, religion,  or socio-economic class - within an area that
ranges in size from a single town to an entire nation.

The country's first community foundation would serve all of Montenegro, from
the southern coast to the mountainous north. It would initially focus on
tax-deductible contributions from tourism related investments, because the
current rate of investment is very high but it is unsustainable as fewer
properties become available. Thus, in the near future this Foundation must
demonstrate value to the citizens of Montenegro, attract their investment in
its programs, and help to incubate several regional community foundations
throughout the country. Only by creating its own foundations can Montenegro
develop a local culture of philanthropy, which can be defined as charity
that expects results. It will build public participation in the development
and sustainability of civil society institutions, such as non-governmental
organizations (NGOs) and the media, which are especially crucial in a new
democracy.

Community foundations were started in the United States almost one hundred
years ago; with these organizations now in 46 countries, it is the fastest
growing field in philanthropy. While Europe's 250 community foundations look
very different from one another depending upon the legal and financial
environment of the area they call home, each foundation strives to fulfill
three basic roles within society:

1) Provide a vehicle for individual or corporate donors to achieve their
financial and philanthropic goals through tax-deductible contributions,
planned giving, and donor advised funds that they can influence.
2) Create a permanent endowment fund with these donations, and use that
fund's proceeds to make grants based on the staff's expert knowledge of
local assets and needs.
3) Catalyze new ideas and facilitate partnerships among NGOs, governments,
businesses and individuals.


Creating a Montenegro Foundation

Led by Len Materman from San Francisco, small group of individuals with
experience in building foundations, and leading Montenegrins in the country
and in the U.S. - are working to establish a Montenegro Foundation in
2007-08.